The Bureau of Labor Statistics employment report for January shows the US economy added 304,000 jobs in the first month of the year. This is 139,000 more jobs than economists had anticipated when looking at projections earlier that month. The robust jobs market can be attributed to the implementation of the Tax Cuts and Jobs Act. The act is a pro-growth, pro-family policy that was passed by Congress in December 2017 and went into effect January 1, 2018, with the intention of reducing taxes on Americans at every income level. The act was not just designed to provide relief to working Americans, but provide more opportunities for Americans seeking to find work as well. This month’s employment numbers show that the act is working and giving the economy the boost it needs by creating jobs even when a quarter of the government is shutdown. Further, economic growth created by tax reform is projected to add 1,443,000 new cumulative fulltime jobs by 2025 and these most recent jobs numbers show that the private sector is on track to reach that goal.
The Bureau’s most recent employment report did not just have good news about the increase in jobs nationwide, but also included statistics showing that the average hourly earnings rose 3.2% in just one year. Over the course of the last ten years, the economy has been stuck in the worst recovery in modern history, seeing just two percent GDP growth. Because of this sluggish recovery, American families were losing an average of $8,600 according to the Joint Economic Committee. The act included a new corporate tax rate of twenty percent, which increased the average household income by at least four thousand dollars. Now one full year out from the passing of the tax act we are starting to see incomes on the rise again. January’s blockbuster employment report carries a good message for the US economy thanks to the Tax Cuts and Jobs Act.
Center for a Free Economy president Ryan Ellis has written several articles about the positive reforms included in the Tax Cuts and Jobs Act: